The Budget

Process
 Budget
Preparation

Budget
Planning
Legislation

Expenditures Budget Cycle

Budget Budget
Accountability Execution
Planning • Review of Strategic Plans and
the Philippine Development
• Alignment of Plans to the
President’s directions (e.g.
0+10 Socioeconomic Agenda
of Duterte Administration)
 Budget • The primary output is the National
Expenditure Program (NEP)
Preparation – Starts with the issuance of the Budget
(January to August)
Call which includes the setting up of
agency budgets ceilings set by the
Development Budget Coordinating
Committee (DBCC) which is composed
of the Office of the President, DBM,
NEDA, DOF – BTr and Bangko Sentral
ng Pilipinas .
 Budget – There is an increase participation of
Civil Society Organization as the
Preparation budget preparation follows the
(January to August) concept of Zer0-Based Budgeting and
Bottom-Up Budgeting.
– Budget hearings are conducted after
agencies submitted their proposals to
DBM. They have to defend new and/or
expanded programs/projects during
the deliberations.
 Budget – Recommendations are crafted after
the deliberations based on physical
Preparation accomplishments of targets and
(January to August) absorptive capacity. Prioritization of
programs and projects is done in case
of budget cuts.
– The consolidated budget (the NEP) will
be called “The President’s Budget” and
will be submitted to the Congress
together with the Budget of
Expenditures and Sources of Financing.
 Budget – The President has 30 days from the
opening of the regular session of the
Preparation Congress to submit the NEP.
(January to August)
– The regular session of the Congress
starts every third Monday of July.
 Budget – The NEP becomes “General
Appropriations Bill” in the House of
Legislation Representatives. After their approval,
(August-December) the GAB will be submitted to the
Senate. Bicameral Conference is done
to harmonize conflicting provisions.
– Section 29 (l), Article VI of the 1987
Constitution provides, “No money shall
be paid out of the Treasury except in
pursuance of an appropriation by law”.
 Budget – The Harmonized version of the GAB
will then be approved by both houses
Legislation and submitted to the President for
(August-December) approval on or before December 31 of
every year.
– The GAB will then be called General
Appropriations Act (GAA).
 Budget – The approved GAB of the Congress
maybe vetoes by the President in
Legislation whole or in part.
(August-December)
– In the GAA, certain automatic
appropriations are provided intended
for fixed and/or specific purposes.
 Budget – The GAA is implemented by the
President through the various
Execution spending agencies. GAA-as-Allotment-
(January-December) Order (GAAAO) is being implemented
starting 2017.
– Agencies can enter into contracts
and/or agreements in order to provide
the basic services to the public.
 Budget – Allotments are issued to provide
obligational authority for agencies to
Execution specific purposes.
(January-December)
– Notice of Cash Allocations are released
directly to agencies’ Modified
Disbursement System (MDS) accounts
in the Government Servicing Banks
(GSBs) subject to quarterly lapsing of
cash.
 Budget – Procurement in the government is
governed by RA 9184 (Government
Execution Procurement Reform Act).
(January-December)
– It provides guidelines in the conduct of
competitive bidding for all government
procurements on goods,
infrastructures and consulting services.
 Budget – Payments are made to valid creditors
only when goods are delivered or when
Execution services are rendered.
(January-December)
– Payment in government is now
cashless and checkless through the
implementation of the ‘Advice to Debit
Account”.
 Budget – The government is spending
Execution its resources to Personnel
(January-December) Services, Maintenance and
Other Operating Expenses,
Financial Expenses and Capital
Outlays.
 Budget – In government, every peso
Accountability counts! Hence, efficiency in the
(January-December) fund utilization is closely
monitored by the DBM.
– Monitoring includes the agencies’
actual physical accomplishments
vis-à-vis targets and the fund
utilization rates.
– Audit done by COA
Thank you!